European Shares Slide Ahead Of ECB Meeting
European stocks fell on Tuesday as investors assessed the global outlook against the backdrop of rising Delta coronavirus cases and signs of a slowdown in the economic recovery.
Market participants also looked ahead to Thursday’s meeting of the European Central Bank, which may act to slow down its massive bond-buying program in light of recent stronger-than-expected inflation data.
Earlier today, the Reserve Bank of Australia pressed ahead with its decision to reduce bond purchases by A$1 billion a week this month but postponed its next review of the weekly pace from November to mid-February.
The pan European Stoxx 600 dropped 0.3 percent to 473.81 after climbing 0.7 percent on Monday. The German DAX gave up 0.3 percent, France’s CAC 40 index slipped 0.1 percent and the U.K.’s FTSE 100 declined 0.4 percent.
Swiss insurer Zurich Insurance Group fell over 1 percent after unveiling new climate measures.
Recruitment firm Adecco Group was little changed after it announced the acquisition of QAPA, a provider of fully digital workforce solutions in France, for an initial consideration of 65 million euros.
Deutsche Telekom AG edged up slightly after it struck a share-swap deal with Softbank Group to increase its stake in U.S. unit T-Mobile and sold its Dutch unit in a major restructuring.
Dutch telecommunication company KPN jumped nearly 4 percent and U.K.’s BT rose 0.7 percent.
Allianz dropped half a percent on reports that German regulator BaFin has started its own investigation into the insurance giant’s Structured Alpha Funds.
Luxury stocks such as LVMH and Kering rose more than 1 percent in Paris on hopes for more economic stimulus from China and Japan, as well as growing views the U.S. Federal Reserve will delay beginning asset tapering.
British paper and packaging leader DS Smith rallied 2.6 percent after an upbeat trading update.
TP ICAP Group shares slumped 7 percent. The world’s largest inter-dealer broker reported a lower half-year profit.
Upmarket fashion retailer Ted Baker climbed 1.8 percent after sales surged during the second quarter.
In economic releases, German industrial production grew 1 percent month-on-month in July, offsetting a revised 1 percent fall in June, Destatis reported. Economists had forecast a monthly growth of 0.9 percent.
On a yearly basis, industrial output advanced 5.7 percent in July, faster than the 5.4 percent increase posted in June.
Economic expectations declined in Germany for the fourth consecutive month, the ZEW economic research institute said with the corresponding index falling to 26.5 in September from 40.4 in August.
Eurozone GDP grew 2.2 percent sequentially in the second quarter, revised up from prior estimate of 2.0 percent.
U.K. house price index climbed 7.1 percent year-on-year in August following a 7.6 percent rise in the previous month, survey data from the Lloyds Bank subsidiary Halifax showed.
The annual rate has slowed every month since hitting a peak of 9.6 percent in May. The latest increase was the slowest in five months.
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